For Singapore firms, home is the right place to list

THE Singapore Exchange (SGX) remains a compelling listing destination for companies with Asean business operations, as well as for setting up of real estate investment trusts (Reits) and business trusts. So far this year, we have seen more foreign issuer listings in Singapore which have been well received.

You can see this from 2019 year-to-date when the SGX saw 10 initial public offerings, of which three were on the mainboard and were all in the Reit sector, namely Prime US Reit, Eagle Hospitality Trust and ARA US Hospitality Trust, which collectively raised over US$1.6 billion.

That shows that there is a strong demand for Reits here, but I also observe good investor appetite for well-run, good-quality Singapore companies as well, although there is currently a dearth of those seeking to list on the SGX.

However, I see some hidden gems with the potential to be brought to market soon. I believe that if you are a Singapore company, the right place to list is here. You're in a home market, and you are already a known entity in Singapore. The market is currently trying to match a high investor demand and a low supply of good Singapore names, which works out in a home-grown company's favour.

Many private companies are also tapping into the private equity market, staying private for longer than in the past. Having said that, one of the advantages of going public is that you build a good profile, in addition to raising capital in the public markets.